Pound Falls as UK Jobs Data Disappoints Investors

The Pound Sterling took a hit on Tuesday after UK unemployment held above forecasts and private-sector wage growth slowed to a near six-year low.

Despite this, investors were cautious in their reaction, weighing the softer jobs backdrop against headline pay growth that narrowly beat expectations.

The Office for National Statistics reported that the unemployment rate was 4.9% in the three months to June, unchanged from the previous period but above the 4.8% consensus.

Regular earnings growth edged up to 3.5%, while total pay growth slowed to 4.1%. However, private-sector wage growth fell to 2.8%, its weakest since October 2020.